1. Financial Growth Backed by Signed Contracts and Expansion Plans
E-Tuk is poised for substantial growth, with turnover projected to rise from €3 million to €7.7 million in 2024 (with year-to-date sales at €3.7 million - some 200 vehicles). This forecast is backed by signed contracts worth €7.3 million with distributors in Europe, Asia and the United States. These agreements ensure that E-Tuk is on track to meet its financial targets.
2. Investor Security Through Priority Liens and Shareholder Guarantees
The first €900,000 of funding will be used to repay an existing loan from Rabobank, securing a first lien on the company's assets, which are estimated to reach €6 million by the end of 2024. This move provides increased security for investors, as they will hold priority in the company’s asset portfolio. Additionally, the company’s wealthy shareholders have committed to guaranteeing 50% of the outstanding loan, further safeguarding investor interests.
The shareholder loans are subordinated to the crowdfunding loans, meaning that investor loans take priority. This approach strengthens E-Tuk's solvency, with projections indicating a 26% solvency rate by the end of 2024 and 48% by the end of 2025. If solvency were to drop below 20%, shareholders are contractually obliged to inject additional funds to restore financial stability.
3. Global Expansion Opportunity in a High-Growth Market
The European market
The market for E-Tuks is expanding rapidly, particularly in urban environments where governments are pushing for cleaner, quieter transportation solutions. While E-Tuks are already a familiar sight in Southern European countries like Portugal and Spain, demand is expected to increase in other areas such as Greece, France, Italy and Croatia. While this pertains to the Limo and Vendo (leisure market) vehicles, large growth is expected in the L2 last mile delivery vehicles in all European capitals. These densely populated cities face growing pressure to replace traditional, polluting delivery vans and buses with modern, electric alternatives, positioning E-Tuk to benefit from regulatory changes favoring clean mobility.
The Asian market
E-Tuks also hold significant promise in the Asian market, where densely packed cities and increased environmental regulation create a perfect environment for E-Tuk’s electric vehicles. With city centers increasingly banning noisy, polluting, taxi buses, E-Tuk provides an effective solution that transports 8-10 people in their electric alternative. The shift to E-Tuks in these areas is not just a regulatory requirement but also a public demand for more sustainable and efficient transportation options. The local sourcing and assembly of these products not only enables E-Tuk to be price competitive but also provides employment in these areas in the assembly and service locations.
4. Superior Quality and Modular Innovation Create a High Barrier for Competitors
E-Tuk stands out in the market due to the superior quality of its vehicles and the modular set-up and offers significant long-term cost advantages, particularly in maintenance and energy efficiency. These savings make E-Tuks a more economical option compared to traditional models, and customers recognize this value proposition. The company’s focus on high-quality construction and durability makes it a strong competitor in both Western and Asian markets, where operational efficiency is increasingly critical.
Additionally, E-Tuk is the only modular builder of E-Tuks, an innovation that provides significant cost advantages in both production and transport. By employing a modular platform, E-Tuk is able to streamline manufacturing processes and reduce transportation costs, a strategy used by major car manufacturers to maintain competitiveness. This modular design also makes it more difficult for new competitors to replicate E-Tuk’s production methods, ensuring a strong competitive edge in the growing electric vehicle market.
In summary, E-Tuk’s solid financial trajectory, expanding market presence, and unique product advantages make it a compelling investment opportunity. The company is well-positioned to capitalize on the global shift toward cleaner urban mobility, with a strategic plan that supports long-term growth and investor security.
